Bullish option flow detected in Canopy Growth with 50,438 calls trading, 4x expected, and implied vol increasing over 5 points to 58.85%. 3/29 weekly 50 calls and 3/22 weekly 48 calls are the most active options, with total volume in those strikes near 10,100 contracts. The Put/Call Ratio is 0.16. Earnings are expected on June 28th.

Canopy Growth and HollyWeed Manufacturing & Extracts have entered into a multi-year processing and extraction agreement. HollyWeed North Cannabis, the parent company of HollyWeed Manufacturing & Extracts, is a female-led, LGBTQ2-positive company based in British Columbia that operates several subsidiaries specializing in the growth, manufacturing, licensing, and production of cannabis and other pharmaceutical grade products. Under the terms of the two-year agreement, HollyWeed Manufacturing & Extracts will process dried cannabis provided by Canopy Growth, in their manufacturing facility in Victoria and will return the oil and resin back to the company. HollyWeed and Canopy Growth expect the first shipment of product for extraction will occur in fall 2019 and anticipate being able to leverage the resin shortly thereafter.

Canopy Growth and OG DNA Genetics announced they have signed an agreement to extend and expand upon their previously announced partnership through to 2024. With this newly signed agreement, Canopy Growth and DNA have extended their partnership beyond Canada and Jamaica and have committed to bringing DNA's world-renowned genetics to a soon-to-be disclosed European market.

Narrow U.S. cannabis bills have better prospects than broad ones, says Cowen. Cowen analyst Jaret Seiberg said it is hard for him to see a scenario in the 116th Congress in which Senate Majority Leader Mitch McConnell holds a vote on legislation to fully legalize cannabis, as too many senators see no political upside for McConnell to schedule such a vote. Given this view, Seiberg believes that prospects are better for narrower bills that could get attached to spending packages and other measures than for broader bills that would legalize recreational use. Of the narrower bills introduced in the U.S. so far, Seiberg believes the SAFE Act on cannabis banking has the best shot before the 2020 election. Publicly traded companies in the cannabis space include Aphria (APHA), Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Canopy Growth (CGC), Cronos Group (CRON), General Cannabis (CANN), India Globalization Capital (IGC), MediPharm Labs (MLCPF) and Tilray (TLRY).